UK Energy Secretary Blocks Plan to Fund Defense via More North Sea Drilling

UK Energy Secretary Ed Miliband vetoed a Treasury plan to increase North Sea oil and gas drilling, OilPrice.com reported on June 25, 2026. The proposal sought to generate higher tax revenues from expanded drilling to help fund £18 billion in military purchases requested by the Ministry of Defence. The plan was presented to Prime Minister Sir Keir Starmer.

Miliband, who has opposed any expansion of North Sea drilling, rejected the measure, and it was not approved. Starmer resigned earlier in the week. A new prime minister and chancellor are expected to take office by September 2026.

The Starmer government had moved to permanently ban the issuance of new North Sea oil and gas licenses. The offshore energy industry has called for predictable taxation policies and continued exploration of the North Sea, stating that such steps would boost UK energy security, raise tax receipts, protect hundreds of thousands of jobs, and strengthen the domestic energy supply chain.